Cashing In on the EUR/USD Forex Signal Before The FED

We closed our long term sell forex signal in EUR/USD a short while ago for a profit of 100 pips more or less. It was a good trade and pretty straightforward because the upside was almost certain to hold. EUR/USD has formed a top between 1.20 and 1.21 don’t think that the top will be broken anytime soon.

Although, we could have made double the profit we made if we had waited a bit longer as the price crawled another 100 pips higher a few weeks ago. I’m not complaining though; 100 pips is a good profit.

The daily chart is already oversold

As you can see from the daily EUR/USD chart above, this pair is severely oversold on this timeframe chart. That is one reason why we decided to call it a day with this signal.

But the main reason is fundamental. There are quite a few important economic releases scheduled today for the USD which will surely send the USD all over the place.

The inflation report (CPI – consumer price index) is due soon and it is expected to jump by 0.4%. If it misses expectations, the USD is likely to tumble for a couple of hours.

In the afternoon, we have a speech scheduled for Trump and the FOMC interest rate decision. Both are extremely important for the Buck and they might send the USD in either direction for several cents.

The FED is expected to hike the interest rates by 25 basis points which should be positive for the USD. But the market doesn’t seem to concerned. After all, everyone knew the rate hike was coming so it might already be priced in. So, we decided to close our EUR/USD signal before the mayhem starts.